Interesting article about Oil

wanghong

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4 D% l6 D3 T8 q7 O2 P& uBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
2 ]" e- x( M. S* R+ Bthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
3 o5 L9 u$ @  K$ a+ LEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
: G! M) Q4 S: p* Y$ ]% x; Q1 D' XA year ago these things would have spiked the price of crude oil by at
7 ]7 a3 f' O6 I4 oleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


" b. w# j  Y0 x1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
# [5 |5 _. h  N$ }$ Z; |Arabia.

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* O+ q: g- M; v& Z1 _2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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7 y8 h4 l- ]8 F4 ?8 _/ V! S% b3. New methods of injecting CO2 and surfactants into oil wells is
# ~# M2 K. }+ n9 t9 G2 W1 Nbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
. y/ _7 o7 g9 X; ]fuel is being produced from many plants and algae. The production
' N" x. \: K* z. Gpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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$ x9 C2 m- P7 Y7 s% _# T9 w# e5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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$ J, `. z1 k4 h% c* b6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
5 n( e7 R: H8 @# V4 Oexpected to be built in the future. Much of the energy they produce
will replace oil.


' B8 m, o- @( b1 l7. Every company in any form of transportaion business is replacing
% O  i+ g6 u) O  m6 Zolder equipment such as trucks, airplanes, train engines, ships, etc.
6 A0 U, c5 I3 O, ~5 Xwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
& u# ~1 l2 Q$ c; _$ Oequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
6 o$ G. O9 P7 U) Bfuel is cleaner and performs better than jet fuel.
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- T4 ?! \; H4 V+ n# l7 T8. Cities and counties throughout the US are selling the rights to
9 v: T* g1 D- ?+ _6 bcapture methane gas from landfills. This is a huge source of gas
/ r6 e, B" ]  ?5 R- i4 v" Favailable at very little cost or risk. The gas is displacing crude
& |% o2 ]( t8 D7 C$ foil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.

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1 N; H, [, _; H8 C10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
% l3 M7 D% y' H6 Nchanging. The important thing is that OPEC no longer has the ability
# T! Q: Q+ k7 G: x! L8 `* @to control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
# F" s+ g2 m2 h$ v2 ZIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
5 N7 c/ r2 F9 G. N( }. }( E+ ^/ X2009 ... FYI-Only